Shale gas has a role to play in decarbonising the UK energy sector

The potential for unconventional gas sources to help the UK meet its carbon budgets

Unconventional gas sources such as shale gas could have a role to play in helping to decarbonise the UK energy sector, according to a new report published today (18 March 2013).

The report, on ‘A UK ‘dash’ for smart gas’, looks at the potential for shale gas in the UK and was written by authors from the Grantham Research Institute on Climate Change and the Environment at London School of Economics and Political Science, the Grantham Institute for Climate Change at Imperial College London, and the Centre for Climate Change Economics and Policy at the University of Leeds and the London School of Economics and Political Science.

The report suggests that natural gas, including from unconventional sources, has an important role to play in the transition to low-carbon electricity generation. Replacing coal power stations with gas over the short term would help to reduce UK carbon emissions, as gas emits less than half the carbon dioxide per kilowatt-hour of coal. 

However in the long term emissions from gas-fired power stations would prevent us from meeting the UK’s carbon targets, “unless it is accompanied by the widespread introduction of carbon capture and storage technology”.

The report goes on to warn that any suggestion that “gas could play a more extensive role should the fourth carbon budget be revised upwards could jeopardise the UK achieving its mandatory emissions targets at least cost.”

There is still uncertainty about the size of shale gas reserves in the UK as well as the cost of extraction.  The report states that “substantial investment in gas on the assumption of low prices and large unconventional reserves is a risky option.”

Any future exploration and extraction of shale gas resources will also have to be subject to strict environmental regulations, particularly in preventing leaks at the wellheads. Public concerns about environmental and social impacts would also have to be addressed.

Neil Hirst, Senior Policy Fellow at the Grantham Institute for Climate Change at Imperial College London, and co-author of the study said:

“Development of the UK's shale gas can contribute to employment, economic growth, energy security, and the balance of trade.  But we must ensure that it complements, and does not undermine, the UK's low carbon strategy.  For this there are three absolutely essential requirements.  Firstly there must be strong and effective environmental regulation.  Secondly, shale gas must not be an excuse to slacken our efforts on energy efficiency and low carbon generation.  And thirdly we must develop Carbon Capture and Storage (CCS) so that gas assets do not become stranded as we progressively cut our greenhouse gas emissions.”